Saigon One Tower project which has been suspended for six years in Ho Chi Minh City now has the chance to be revived by the new investors through a public auction which is scheduled to be held in early April.
The amount of bad debt that the Vietnam Asset Management Company (VAMC) has to deal with this year accounts for nearly half of the total bad debts VAMC has bought from banks.
New details regarding the business performance and financial health of Hoan Cau Group reveal a large pool of bad debt of VND2.4 trillion (roughly US$105 million) that was just repossessed by VAMC (Vietnam Asset Management Company).
These debts have collateral such as real estate, value machines and equipments in Da Nang and Ho Chi Minh City.
The debt is secured with 50,000 square metres of land plots in District 7, Ho Chi Minh City.
An increase from VND500 billion to 2,000 billion (equivalent to US$22 to 88.1 million) has been approved; however, this amount has not been provided to Vietnam Asset Management Company (VAMC) until now.
After the Vietnam Asset Management Company (VAMC) seized Saigon One Tower project as a collateral, many banks made similar moves with customers violating the debt obligations.
Saigon One Tower is a real estate project with the scale of VND5,000 billion (roughly US$220 million), but this project has been suspended since 2011 in Ho Chi Minh City.
After a period of actively selling non-performing loans to the Việt Nam Asset Management Company (VAMC), banks are buying back the debts from the VAMC to self-handle.
